SDCExec.com |

Ottawa, Canada — October 16, 2007 — According to recent analyst reports, experts have stated that a company's responsiveness is vital to its success in today's volatile business environment.

Industry analysts from AMR Research, Aberdeen Group, Technology Forecasters Inc. and Ventana Research all advocate the merits of Response Management, which is the ability to quickly and effectively respond to change.

According to these analysts, when it comes to managing volatile global supply and fulfillment networks, visibility and planning alone — no matter how sophisticated — are insufficient. In a business environment of increasing complexity and risk, companies should look beyond supply chain visibility and planning to complementary competencies that enable rapid, collaborative resolution to ever-present change.

The point of power has shifted from the manufacturer to the customer, and demand responsiveness is the new basis of competition. This customer-centric mindset acknowledges that companies can no longer effectively "plan" their customers' needs; rather they must focus on responding to them. As such, Response Management has emerged as a business imperative for demand-driven leaders.

This is largely the subject of AMR Research's May 2007 report, "Response Management: Next Wave of Supply Chain Innovation?" Its primary author, AMR Research Director Stephen Hochman, recently participated in podcast interviews with IndustryWeek and Supply & Demand Chain Executive. The podcasts explore the fundamental concepts of Response Management and the industry trends that are driving the need for this distinct class of capabilities.

Nari Viswanathan, research director, Supply Chain and Logistics, of fact-based research company Aberdeen Group, issued a research brief entitled "Beyond Supply Chain Visibility: Response Management is the Key," August 2007, which outlines the key characteristics of solutions that go beyond visibility toward enabling a flexible Response Management capability, noting that the ability to respond to change rapidly is emerging as critical to a company's success. This research report identified that companies using visibility technology within the context of Response Management are three times as likely to have faster order to delivery cycles.

"Responsiveness is key to success for both OEMs and EMS organizations: Everyone in the 'value chain' needs to be responsive to change…That means that those on the front lines making decisions must be empowered with accurate information…Response Management allows front-line decision-makers to proactively manage inventory and supply exposure and material costs." (Excerpted from "Response Management for the Next Wave of Outsourced Manufacturing," Technology Forecasters Inc., August 2007.)